MurphkitschTHE ODDLY USEFUL TOOL LAB
한국어
Home / Money & business

Break-Even Calculator

Selling price must exceed unit variable cost. Assumes constant prices, unit variable costs and fixed costs.

Selling price must exceed unit variable cost. Assumes constant prices, unit variable costs and fixed costs.

Your workbenchInputs are not stored

Result

Enter your values and run the tool to see your result.

What this tool does

Finds the break-even quantity and the revenue at that point from fixed cost, price, and unit variable cost. Fixed cost is divided by the contribution margin, which is price minus unit variable cost.

How to use it

  1. Pick a period and enter the fixed cost for it. Do not mix monthly and annual figures.
  2. Enter the price per unit.
  3. Enter the variable cost per unit. It must be below the price.
  4. Run it to get the break-even quantity and revenue.

Worked example

Fixed cost 10,000, price 100, and variable cost 60 give a contribution margin of 40, a break-even quantity of 250 units, and revenue of 25,000.

Calculation method

Break-even unitsfixed/(price-variable)
Break-even revenuefixed/(price-variable)*price

Frequently asked questions

Why is there no result when unit variable cost exceeds price?
Each additional sale increases the loss, so no break-even quantity exists. You must raise the price or cut variable cost.
Which costs are fixed?
Costs that do not move with volume — rent, salaried pay, base fees. Materials, payment fees, and packaging grow per unit, so they are variable.

What this tool does not cover

A single-product model where price and fixed cost do not change with volume. Volume discounts, capacity limits, and multi-product mix are not reflected.

References